Swiss Syngenta unveils big plan after ChemChina takeover
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E-mail Xinhua, June 28, 2017
World's agribusiness giant Syngenta and its new owner ChemChina unveiled new ambitions Tuesday, eyeing a place of top three in global seeds business by further expansion in emerging markets, especially China.
The company said it intends to profitably grow market share through organic growth and collaborations, and is considering targeted acquisitions with a focus on seeds. The goal is to strengthen Syngenta's leadership position in crop protection and to become an ambitious number three in seeds.
For that end, further expansion in emerging markets, notably China, will be the key in the future.
In 2016, the Asia-Pacific region only stood about 15 percent of Syngenta's annual sales, reaching 1.84 billion U.S. dollars, while the rest regions, North America, Latin America, as well as Europe, Africa and the Middle East, all contributed more than 3.2 billion U.S. dollars.
In addition to market growth, increasing efforts in digital agriculture and ongoing investment in new technologies to increase crop yields, as well as reducing CO2 emissions and preserving water resources, will also play a major role in securing the company's leadership.
Before the announcement, a general meeting of Syngenta shareholders elected Ren Jianxin, chairman of ChemChina, as chairman of the board of directors on Monday. But Syngenta's operational independence in the future under the governance of the existing management team has been reaffirmed.
At Tuesday's press meeting, Ren said together with Syngenta's board and management and all its employees, "we will work for the benefit of growers and to enhance food security, and fight famine around the world, based on principles of technological leadership, environmental safety and sustainability."
Vice Chairman and Lead Independent Director of Syngenta Michel Demare also reassured that growth is the focus behind the whole acquisition.
"All our stakeholders are benefiting from this change of ownership," Demare said, referring that Syngenta will maintain the highest corporate governance standards as a standalone company, while sharing with ChemChina a common long-term vision of contributing to global food security.
Earlier in June, Chinese state-owned chemical giant ChemChina announced the completion of a deal of 43 billion U.S. dollars to acquire Syngenta.
ChemChina has purchased 94.7 percent of Syngenta's shares so far and will push forward the delisting of Syngenta from both Switzerland and the United States. In the future, ChemChina will implement a strategy to make Syngenta go public again with a view to realize long-term development and create greater value, the company said.
